Economics · Banking and Finance
What is a major key criticism or risk associated with unregulated microfinance lending practices?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1It mandates legal market linkages with international consortia
- 2High interest rates and intense repayment pressure can lead borrowers into debt traps✓
- 3It restricts clients to opening basic savings accounts only
- 4It strictly fails to reach women borrowers in rural setups
Correct answer
High interest rates and intense repayment pressure can lead borrowers into debt traps
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